forecast, 5 key things to watch out for

The central bank is widely expected to maintain a status quo on key policy rates. RBI governor Shaktikanta Das will announce the interest rate decision of the bimonthly monetary policy meeting at 10 am. The status quo is expected to be maintained on policy rates while observing the impact of global headwinds on Indian economic growth and inflation.

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“While the upcoming policy may not see material changes in macro assessment by RBI, issues like case & timing of policy pivot/stance change, factors influencing liquidity management ahead and, of course, assessing which part of the yield curve has the maximum juice, etc would be key for markets," said Madhavi Arora, Lead Economist at Emkay Global Financial Services.

Here are five key things to watch out for in RBI policy today:

Repo Rate

Analysts and economists on D-Street widely expect the RBI to keep its key repo rate unchanged at 6.50% in the April policy meeting for the seventh time in a row. The repo rate is the interest rate at which the central bank lends short-term funds to commercial banks. The repo rate has been kept unchanged since April 2023.

At present, Repo Rate stands at 6.5%; Standing Deposit Facility Rate is 6.25%; Marginal Standing Facility Rate is 6.75%; Bank Rate is at 6.75%; and the Fixed Reverse Repo Rate is at 3.35%.

Also Read: RBI MPC meeting: Rate pause may continue on GDP growth, inflation; Key indicators to watch

Policy Stance

The RBI is likely to continue with its stance of ‘withdrawal of accommodation’. The central bank’s policy stance indicates the thinking within the Monetary Policy Committee.

GDP Growth Target

India's GDP growth rate in the quarter ended December 2023 stood at 8.4%, sharply above RBI’s estimates. However, in its February policy, the RBI had projected India’s GDP to grow at 7% in FY25. Economists believe the central bank may revise its GDP growth target.